Ethereum to Improve ERC-20 Token Standard for Privacy

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Ethereum, a leading blockchain platform known for its smart contracts, is set to improve privacy for its ERC-20 tokens. Circle, a stablecoin issuer is leading this change. In collaboration with Inco Network, Circle’s research team released a Whitepaper called “Confidential ERC-20 Framework,” which explains how to make ERC-20 tokens more private and secure.

Details of ERC-20 Framework Features

The Confidential ERC-20 Framework has four main features. These features will afford users more control over their financial information and expand the use of ERC-20 tokens. The first feature is an advanced privacy layer that keeps sensitive user data confidential during transactions. The second part is a set of tools for managing risks. These tools help organizations meet privacy rules and regulations, especially in strict markets. 

Furthermore, the ERC-20 tokens will focus on creating various applications beyond traditional decentralized finance (DeFi). This includes private lending, decentralized voting, and other cases where privacy is important. 

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The final innovation is the key technology of the Confidential ERC-20 Framework. This framework uses Fully Homomorphic Encryption (FHE) on the Ethereum Virtual Machine (EVM) dApps. FHE allows calculations on encrypted data without decrypting it while keeping secure data throughout the process. 

As Circle advances this proposal, the Confidential ERC-20 Framework could set new standards for privacy in Ethereum. This framework will support the next generation of applications focusing on decentralization and privacy.

Ethereum Positioned as a Universal Tool

Vitalik Buterin, Ethereum co-founder highlighted Ethereum’s founding philosophy a few days ago. At first, he compared the Ethereum address to the principle of “text as a universal interface.” By this analogy, he positioned the ETH address as a universal tool for authorization across the blockchain ecosystem. Then, he called it the philosophy behind the main alternative blockchain.

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It is also worth noting that in recent weeks, Buterin has proposed a few solutions via some dedicated enhancements that could improve Ethereum’s future potential. So far, he discussed The Merge, The Scourge, The Surge, The Verge, and The Purge. Meanwhile, Buterin acknowledged that the network is working on alternatives, including grants that allow recipients to stake ETH independently.

Vitalik Unveiled Plan to Address Quantum Risks

Recall that the visionary co-founder revealed a comprehensive strategy to fortify Ethereum’s defenses against threats posed by quantum computers. Also, he outlined a potential recovery plan in a quantum emergency. The plan was revealed in his latest research titled “How to hard-fork to save most users’ funds in a quantum emergency.” He proposed diverse measures ti safeguard users’ funds in the face of quantum advancements.

Buterin stressed the significance of quantum-resistant cryptography in protecting the Ethereum system against the threat of malicious entities. Additionally, he suggested deactivating conventional externally owned account (EOA)-based transactions.

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